Although the revenue and EPS for Lithia Motors (LAD) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Lithia Motors (LAD) came out with quarterly earnings of $6.74 per share, missing the Zacks Consensus Estimate of $8.09 per share. This compares to earnings of $7.79 per share a year ago.
Lithia Motors (LAD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Lithia Motors shifts capital allocation from acquisitions toward dividends and aggressive share repurchases, signaling a transition to a more mature capital strategy. LAD's Q3-2025 results show 5% revenue growth and a 17% increase in adjusted EPS, with buybacks totaling 5.1% of shares at $312 average price. I see LAD as undervalued, with a low PEG ratio (0.51) and a one-year price target of $356.75, justifying a Buy rating (down from Strong Buy).
Rocket Pharmaceuticals is rated Buy with a $17 price target, reflecting a deep disconnect between intrinsic value and current valuation. RCKT's bullish thesis hinges on a high-probability LAD-1 approval in March 2026 and the pivotal Danon's disease trial resuming with an amended, safer protocol. Risk-adjusted DCF values Danon's and LAD-1 programs at ~$700M, far exceeding the current $151M EV, even under conservative or bear-case assumptions.
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Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
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Lithia Motors (LAD) reported earnings 30 days ago. What's next for the stock?
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Lithia Motors remains a "Buy" due to strong growth, attractive valuation, and continued expansion via acquisitions despite recent share underperformance. LAD reported robust revenue and profit growth, driven by higher vehicle sales and strategic dealership acquisitions, though gross profit per unit declined as industry conditions normalized. Significant leverage from acquisition-driven growth keeps LAD's EV/EBITDA valuation above peers, raising concerns about debt levels versus market cap.